Nippon Steel shares up after news of US looking to block peer's acquisition

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TOKYO : Shares of Nippon Steel climbed on Thursday, outperforming the wider Nikkei index, after the news that the White House was looking to block the company's $15 billion bid for its peer U.S. Steel. Sources told Reuters on Wednesday U.S.

FILE PHOTO: Nippon Steel logo is displayed at the company's headquarters in Tokyo, Japan April 1, 2024. REUTERS/Issei Kato/File PhotoTOKYO : Shares of Nippon Steel climbed on Thursday, outperforming the wider Nikkei index, after the news that the White House was looking to block the company's $15 billion bid for its peer U.S. Steel.

While losing more than 1 per cent in the early trading in Tokyo on Thursday, Nippon Steel's shares recovered to trade 1.5 per cent higher by 0144 GMT, outperforming the wider Nikkei index which was flat. U.S. Steel shares closed down 17.5 per cent. To win support from the influential United Steelworkers union, Nippon Steel has pledged to move its U.S. headquarters to Pittsburgh, where U.S. Steel is based, to invest over $2.7 billion in union-represented facilities and to ensure that the core senior management as well as a majority of board members at the U.S. company would be U.S. citizens.

"Japan is one of our most staunch allies," U.S. Steel said in a statement."We fully expect to pursue all possible options under the law to ensure this transaction... closes."

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